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CBI Books Infra Firm For Alleged Cheating To The Tune Of Rs. 1,000 Crore:

Courtesy/By: Sakshi Shukla | 14 Mar 2019

The CBI has on Tuesday booked the promoters of the Ranchi Expressway Ltd, including its CMD K Srinivasa Rao, for allegedly causing a loss of over ?1,000 crore to a consortium of banks led by Canara Bank, officials said.

The agency has registered an FIR against Ranchi Expressway Ltd CMD K Srinivasa Rao, its directors N Seethaiah, N Prithvi Teja and the company itself, besides Madhucon Project Ltd, Madhucon Infra, Madhucon Toll Highway Ltd and auditing firm named 'Kota and company'.

The FIR has also been registered against unidentified officials of the consortium of banks.

The matter pertains to four-laning of 163-km stretch on NH-33 connecting Ranchi to Jamshedpur for which the National Highways Authority of India had chosen Madhucon Project Ltd on March 18, 2011.

It was mandatory for Ranchi Expressway Ltd and its sponsors to contribute equity to the extent of at least 25 per cent of the total project equity contribution i.e ?115.80 crore before initial drawdown date as per contract with the banks," an official said.

The promotor-directors of Ranchi Expressway K Srinivasa Rao, N Seethaiah and N Prithvi Teja round tripped ?50 crore, diverted ?22 crore, claimed ?98 crore as maintenance and used ?94 crore as mobilisation advance totalling to about ?264.01 crore, according to an SFIO report, they said.

Courtesy/By: Sakshi Shukla | 14 Mar 2019